VolitionRx Ltd Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes

Income Taxes

12 Months Ended

Dec. 31, 2014

The Company has estimated net operating losses for the years ended December 31, 2014 and 2013 of $7,141,271 and $3,456,345, respectively, available to offset taxable income in future years.

The Company is subject to Singapore income taxes at a rate of 17 percent, Belgium income taxes at a rate of 34 percent, and US taxes at a rate of 34 percent, for a weighted average of 32 and 30 percent, respectively. The reconciliation of the provision for income taxes at the weighted average rate compared to the Company’s income tax expense as reported is as follows:

	2014 $			2013 $

Net loss		(8,213,529	)		(3,710,289	)
Tax adjustments		1,072,258			253,944
Estimated net operating losses		(7,141,271	)		(3,456,345	)

Tax rate		32%			30%

Income tax recovery at statutory rate		(2,247,408	)		(1,044,766	)

Valuation allowance		2,247,408			1,044,766

Provision for income taxes		–			–

The significant components of deferred income taxes and assets as at December 31, 2014 are as follows:

	2014 $			2013 $

Net operating losses carried forward		4,295,152			2,466,484

Valuation allowance		(4,295,152	)		(2,466,484	)

Net deferred income tax asset		–			–

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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